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Options to include a business partner |
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Adding a junior business partner: The specific method to include a junior business partner depend on the role of the partner. -working partner? Then he may join as vice-president, director, director of R&D, director of finances, director of strategic planning, director/advisory... he may take a salary as equity or cash. Simply write a contract agreement with him/her and both sign the documents, if he trusts you enough to retain the entity as Sole Prop. -nonworking partner? He might be an investor. If he wishes to be a formal investor, then you need to incorporate your business as LLC or C-Corp. You may incorporate it as a close-c-corp that limits the number of shareholders as well as it is not a publicly traded corporation. All other corporate laws are applicable. A close-corp may also help you include more shareholders, often up to 20 or 30 depending in the state of incorporation. -simply partner without any specific role for the junior partner? Then try "partnership" business. The ratio of stakes may be agreed upon, and the company registered as partnership organization. A CPA or a Lawyer may be able to get this done in one day for a nominal fee. -partnership is a serious business. It is best to enter into some form of formal agreement to avoid future disappointments since rewards seldom meet expectations. A fundamental problem in partnerships has been their inability to recognize that the other partner might have worked harder. |
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